Rcvd a 1099 R from a life insurance company for an Annuity purchased 4/2008 and cashed in 2017. Cost Basis ~$24000 and received in $32000. For an $8000 profit. Some how it appears that the entire amount of $32000 is being taxed in PA. Is that correct? It appears as if TT is only taxing the profit for federal but ALL of the gross distribution for PA?? Can you help me or am I entering the data incorrectly. This is not an IRA of any type just a annunity purchased. Thank you.
